Abstracted from Lloyds List
BY Keith Walllis

The study examines Bulgaria, Romania, Slovakia, Latvia and Lithuania, taking into account their likely competitiveness once these eastern European countries have gained EU membership. It also makes recommendations regarding required reforms.

Comprehensive information was gathered by the report's authors, the British consultants Appledore International, except in Romania, where there was limited co-operation.

The report, Eastern European Shipbuilding Industry Study for Applicant Countries, concluded that Bulgaria required outside EU financial support because of the weakness of the country's banking system.

This, said the report, would: 'Assist the general development of the sector in making a successful transition to the market economy until the yards establish their own reputation with the international banking community.' It added that extra help may be needed to improve the Bulgarian sector's and health and safety performance.

Indeed, Sue Hall, Appledore consultant, told Lloyd's List that all shipbuilding yards in the region could be helped by bridging loans that enabled them to meet commercial orders. That would then cement their reputation with western investment bankers. She added that one-off grants could also help yards acquire a portfolio of leading edge designs, which could help them win orders.

Bulgaria's difficulties are compounded by the fact that the country's largest shipyard, Varna, went into receivership in 1999 and its future has yet to be resolved. Despite this, and general low productivity, the report concludes that there is nonetheless hope for the Bulgarian sector, citing low labour costs creating 'unit operating costs that are highly competitive', with potential for it diversifying from its usual 'more basic cargo ship' building and repair work to 'more complex vessels'.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!